IBM has reported its sixth consecutive quarterly rise in profit as its long-term contracts largely shielded it from the shortfalls that hit other technology companies.
Its earnings beat expectations, and the stock rose slightly even though revenue fell about $100 million shy of analysts' average estimates.
The world's largest computer company said second-quarter net income rose to $2.0 billion, or $1.16 a share, from $1.7 billion, or 97 cents a share, a year earlier, including items. Revenue rose to $23.2 billion from $21.6 billion a year earlier.
IBM, based in Armonk, New York, is often seen as an indicator for the broader technology sector because it sells everything from tiny microchips to computer software and services to extremely powerful mainframe computers.
"The recovery is slow and steady but in the right direction. IBM is showing that," said Mr Rob Schafer, program director at Meta Group, speaking about a modest rebound in the tech sector. "This quarter is the tortoise but not the hare."
IBM's Chief Financial Officer Mark Loughridge said the recovery was spotty but still on track.